Model X Will Be The Game Changer, According To Tesla Motors Inc (TSLA) CEO Elon Musk

Tesla Motors Inc (NASDAQ:TSLA) CEO, Elon Musk, bets on the upcoming Model X Crossover. The CEO believes that it will be a game changer helping the company to double its sales. The latest model is regarded as the follow up to Model S sedan, which witnessed tremendous interest among the buyers. He was speaking at the media conference of Allen & Co. in Sun Valley.

Orders Waiting

Tesla Motors Inc (NASDAQ:TSLA) CEO belief is appeared to be on the basis of orders. There are over 20,000 orders waiting for delivery for the electric crossover model. Incidentally, the company will launch the model this fall season. The order number could suggest the amount of interest that the model has generated even before the launch.

However, it would not be easy for the company to fulfill all the orders in the current year itself. Credit Suisse’s automotive analyst, Dan Galves, expect the company to deliver approximately 7,000 Model X crossover in the current year. That means that the electric vehicle maker would be able to meet only 35% of the orders, and the balance might be pushed to the next year. Also, the analyst believes that the ramping up of Model X deliveries would be gradual since the company is unlikely to reach full production till next year.

Matches With Growth Rate

Tesla Motors Inc (NASDAQ:TSLA)’s initial numbers might match with the growth rate of its Model S. For instance, the company delivered 32,000 Model S electric vehicles to the customers in 2014. The electric vehicle maker is targeting a 50% growth in the number to 48,000 in the current year. In all, the company’s CEO is aiming to deliver about 55,000 vehicles in the current year.

The electrical vehicle maker is aiming still bigger. The objective of the firm is to enable its sales reach the magical figure of 500,000 vehicles a year by the turn of 2020. For that, the company is also hoping to bring in Model 3. The three models would fuel the sales number to reach the targeted level. Tesla’s Model 3 is considered as a mass market offering. The electric vehicle will be launch in the form of both a sedan and a crossover.

Concept Next Year

The company expects to unveil the concept of Model 3 next year while the initial production will commence from the year 2017. The electric vehicle maker has kept a target in such a way to include Model S, X, and 3. There appears to be no back plan to achieve the targeted level of sales in the event of any production glitches.

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.